Environmental and Urban Economics

Winner's curse arises in cases where several bidders in an auction are unaware of the true value of the object.   In this auction, the most optimistic of the bidders will bid the most for the object.  Unfortunately, for the bidder --- the best estimate of the value of the object is the average of the bids.  Since the winning bidder bids more than the average bid, the winner overpays for the object and is "cursed".   If the bidders "know that they do not know" the value of the object, then they have an incentive to shade down their bid. 

The New York Times has a nice piece about the Nash Game that cities are now playing as they position to attract the new Amazon HQ.    A few thoughts.

As we enter the recruiting season for both new MA and PHD students and recruiting new faculty, it is useful to collect some facts about where USC Economics ranks.   I find that vanilla rankings such as US News and World Report are backwards looking and based on outdated information.  So, permit me to present some facts based on REPEC;

We are ranked #20 among U.S economics departments (Columbia is double counted).

We are ranked #23 in the world among research universities.

The NY Times has published a very interesting piece on the unintended consequences of Clean Air regulation in China.   The piece makes some excellent points and then at the end of the piece it takes a punch at the autocratic state.   Permit me to make some economics points that build on the piece.

Roughly 15,000+ economists are trying to get to Philadelphia today for the annual ASSA meetings.   In a typical year, I greatly enjoy the meetings.  It is a place to see old friends, mentors, past students, co-authors and to attend sessions, meet with book editors and talk about economics.  This is a special year for USC Economics this year because we will hire 3 new PHDs to join our faculty.  As we upgrade our department, we need "new blood".  We will be interviewing 50 people.